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US prepares crackdown on Chinese chipmakers

The move could impede China's endeavour to be technically self-sufficient

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The US considering banning American suppliers from selling advanced equipment to Chinese chip-makers. The ban may be drafted within a few months and will target companies like Hua Hong Semiconductor, Changxin Memory Technologies and Yangtze Memory Technologies. 

The move could impede China's endeavour to be technically self-sufficient. The proposed ban would also majorly impact  Semiconductor Manufacturing International Corp (SMIC), China's top chip manufacturer. 

Most chip manufacturers in China rely on US technology to various extents to fabricate chips. The ban might not be limited to only Chinese manufacturers but all chip manufacturers on the Chinese mainland.

SK Hynix of South Korea, Infineon of Germany, NXP of the Netherlands, and Texas Instruments of the United States could all face the same export control rules. The US Department of Commerce might also persuade chip manufacturers in Japan, the Netherlands and other countries to adopt similar rules.

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